Stocks Face Early Pullback

Oil rises near $72 a barrel. Treasury yields continue falling.
Publish date:

Stocks in the U.S. were set for a lower open as investors appeared ready to pocket some profits after five straight days of gains last week.

Futures on the

S&P 500

were about 3 points below fair value, and the Nasdaq 100 was indicated to decline nearly 9 points at the start of trading.

The 10-year Treasury was higher by another 5/32 in price, lowering the yield to 4.82%. Since last week, the yield on the note has dropped by 17 basis points. The dollar fell against major world currencies.

Oil futures climbed 80 cents to $71.94 a barrel after Iran, the world's fourth-largest exporter, said this weekend that it wouldn't halt its uranium-enrichment program. Iran plans to respond Tuesday to a demand from the West that it put an end to its nuclear program.

This week's economic calendar, with the exception of housing data, is light, but investors will be paying attention to a gathering of economists in Jackson Hole, Wyo., that will include

Federal Reserve

Chairman Ben Bernanke. Following two government reports last week that suggested tame inflation, Bernanke might offer comments that will give the market some idea about where he's leaning on rates.

At a meeting earlier this month, Fed policymakers left the fed funds target rate unchanged for the first time in more than two years.


(LOW) - Get Report

, the seller of home-improvement goods, earned $935 million, or 60 cents a share, for the second quarter, up from $839 million, or 52 cents a share, a year ago. Revenue rose to $13.39 billion from $11.93 billion. Analysts were calling for a 61-cent profit on sales of $13.38 billion.

Same-store sales advanced 3.3% for the second quarter, but Lowe's said they would be flat to up just 2% for the third quarter. The company also forecast third-quarter total sales growth of 11%, shy of the 13% Thomson Financial target. Lowe's profit guidance of 45 cents to 48 cents a share was in line with the 46-cent consensus estimate.

Overseas shares were mostly lower. London's FTSE 100 added 0.1% to 5909, but Frankfurt's Xetra DAX was losing 0.4% to 5793. Tokyo's Nikkei 225 lost 0.9% to 15,969, and Hong Kong's Hang Seng fell 1.9% to 17,008.